Sawaber And Dasman View

The state-owned Touristic Enterprises Company (TEC) manages most of Kuwait’s tourist facilities, including the famous Kuwait Towers – a landmark and emblem of Kuwait, the Entertainment City at Doha, sea club developments along the coastline including a luxury development at Khiran near the border with Saudia Arabia. TEC is involved in a number of schemes that are expected to open in 1999, the major one being the underwater aquarium and Imax theatre complex in Salmiya with funding coming from the Kuwait Foundation for the Advancement of Sciences (KFAS).

The Kuwait Investment Authority (KIA) is the Government agency responsible for the state shareholdings in upwards of 60 local companies. In 1994, KIA commenced the sale of these shareholdings in a privatization program that is expected to be completed by the year 2002. Public offerings or placements take place on a planned regular basis to avoid an over supply situation and meet the regular demands of the market. The Government plans to privatize the Public Utilities through KIA with the first utility likely to be the Ministry of Communications. The major stumbling block has been the problem of reduced manpower that will be the result of any privatization.

Kuwait Airways (KAC) is another public utility that may be privatized  with the Government retaining a 40% share and a further 10% being allocated for KAC staff. KAC has undergone a fleet modernization program with two Boeing 777’s recently added to the fleet of 18. The attendants received their new uniforms in 1998 and its on-board services have been upgraded to bring its standards of customer care into line with the world’s top airlines.

The Central Bank of Kuwait (CBK) is the Government’s sole agent for control of monetary policy and the supervision of banks, insurance and investment companies. There are six Kuwaiti-owned commercial banks – Al Ahli Bank, the Bank of Kuwait and the Middle East, Burgan Bank, the Commercial Bank of Kuwait, Gulf Bank and the National Bank of Kuwait. In addition, there is the Kuwait Finance House which is a Kuwaiti-owned Islamic financial institution offering Islamic banking services. The Bank of Bahrain and Kuwait (BBK) is a 50% locally-owned branch. Also, there are three specialist banks -  the Industrial Bank of Kuwait, the Kuwait Real Estate Bank and the Savings and Credit Bank (SCB).

Consolidated total assets of the commercial and specialist banks (except for BBK and SCB) were over $42 billion at the end of 1997. Total shareholder’s funds were $4.2 billion which represent very healthy debt-to-equity ratios in line with the world’s top banks. Distribution of bank credit to the private sector  was mainly in personal facilities.